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What Changed
Risk factors · Feb 19, 2025 → Mar 2, 2026
100 added · 115 removed between the two most recent 10-Ks. The risks a company starts — or stops — disclosing are often the story.
Newly disclosed
In September 2025, the FASB issued ASU No. 2025-06, “Intangibles - Goodwill and Other - Internal Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal Use Software.” The standard modernizes and simplifies guidance for internal-use software costs.
As described in Management’s Report on Internal Control over Financial Reporting, management has excluded its Hebron operations resulting from the acquisition of Anderson Manufacturing assets from its assessment of internal control over financial reporting as of December 31, 2025, because it was acquired by the Company in a purchase business combination in the third quarter of 2025.
Business Combination: On July 1, 2025, the Company acquired substantially all of the assets of Anderson Manufacturing (“Anderson”) for a total purchase price of $ 15.8 million in cash, with $ 15 million having been paid in cash at the closing of the transaction and $ 0.8 million having been held back from the purchase price for the purposes described in Note 2 below (the “Anderson Acquisition”).
In September 2025, the FASB issued ASU No. 2025-06, “Intangibles - Goodwill and Other - Internal Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal Use Software.” The standard modernizes and simplifies guidance for internal-use software costs.
These allocations reflect various provisional estimates that were based on the information available at the time and are subject to change during the purchase price allocation period. 62 The following table summarizes the Company's preliminary fair value of the assets acquired, as of July 1, 2025, for the Company’s Anderson Acquisition.
The pro forma impact of the acquisition and the results of operations attributable to Anderson in 2024 and 2025 have not been presented, as they are not material to the Company’s consolidated results of operations. 63 3.
The Anderson Acquisition was funded by the Company with cash on hand and has been accounted for in accordance with ASC 805 - Business Combinations, which requires, among other things, an assignment of the acquisition consideration transferred to the sellers for the assets acquired, using the bottom up approach, to estimate their fair value at acquisition date.
This guidance is effective for annual reporting periods beginning after December 15, 2027 46 including interim reporting periods within those annual reporting periods.
This guidance is effective for annual reporting periods beginning after December 15, 2027 including interim reporting periods within those annual reporting periods.
The Company incurred acquisition related costs of approximately $ 0.5 million, which are included in selling, general and administrative expenses in the Company’s Consolidated Statements of Income and Comprehensive Income.
Acquisition of Anderson Manufacturing Assets As described in Note 1, the Company closed on the Anderson Acquisition on July 1, 2025.
During the measurement period, not to exceed one year from the date of acquisition, the Company may record adjustments to the estimated fair values of the assets acquired and liabilities assumed with a corresponding adjustment to goodwill in the period in which such revised estimates are identified.
No longer disclosed
As such, it does not seem prudent to carry inventory at full cost beyond what the Company projects to be needed during the next 36 months. 43 Recent Accounting Pronouncements In November of 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” The updated accounting guidance requires enhanced reportable segment disclosures, primarily related to significant segment expenses which are regularly provided to the chief operating decision maker.
Recent Accounting Pronouncements In November of 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” The updated accounting guidance requires enhanced reportable segment disclosures, primarily related to significant segment expenses which are regularly provided to the chief operating decision maker.
As of December 31, 2024, the Company was a defendant in eight ( 8 ) lawsuits involving its products, including four ( 4 ) municipal lawsuits, two ( 2 ) lawsuits based upon unfair trade practices, one (1) breach of contract, and one (1) trademark litigation.
As of December 31, 2023, the Company was a defendant in seven ( 7 ) lawsuits involving its products, including one ( 1 ) traditional product liability lawsuit, four ( 4 ) municipal lawsuits and two ( 2 ) lawsuits based upon alleged unfair trade practices.
As of December 31, 2022, the Company was a defendant five lawsuits involving its products, including one ( 1 ) traditional product liability lawsuit and four ( 4 ) municipal lawsuits.
During 2024, one ( 1 ) trademark lawsuit was filed against the Company, one ( 1 ) negligence lawsuit was resolved, and one ( 1 ) traditional product liability lawsuit was resolved.
The Court denied the motion with respect to Plaintiffs’ breach of contract claim, concluding that development 74 of additional information is required to assess the applicability of the limitation of liability clause contained in the Company’s terms and conditions of use.
While it is not possible to forecast the outcome of litigation or the timing of costs, in the opinion of management, after consultation with special and corporate counsel, it is not probable and is unlikely that litigation, including punitive damage claims, will have a material adverse effect on the financial position of the Company, but may have a material impact on the Company’s financial results for a particular period.
During 2023, one ( 1 ) traditional product liability lawsuit was filed against the Company and one ( 1 ) was resolved.
On December 21, 2022, the City of Rochester, New York filed a lawsuit captioned The City of Rochester v.
On December 20, 2022, the City of Buffalo, New York filed a lawsuit captioned The City of Buffalo v.
The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates. 48 Last-In, First-Out Inventory Reserve As described in Notes 1 and 4 to the financial statements, substantially all of the Company’s inventories are valued at the lower of cost, which is principally determined by the last-in, first-out (LIFO) method, or net realizable value, and the Company’s consolidated net inventories balance of $76.5 million as of December 31, 2024, included a LIFO inventory reserve of $66.4 million.